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Wednesday, March 2, 2016

Govt to consider partial rollback of tax on EPF

Under all-round attack, the government on Tuesday promised to consider demands for a partial rollback of the proposal to tax 60 per cent of withdrawals from provident fund and a ceiling on employers contribution but made it clear that EPF will continue to be tax exempt.

Earlier in the day, Revenue Secretary Hashmukh Adhia said only 60 per cent of interest on contributions made after April 1, 2016 will be taxed and that the principal amount of contribution will remain untouched at the time of withdrawal.

However, in the evening a government press note said a proposal to tax only interest and not principal is under consideration.